Bukit Asam to complete acquisition plan in December

State owned coal producer PT Tambang Batubara Bukit Asam is finalizing its plan to acquire a coal mining company in Kalimantan and hopes the acquisition could be completed in December, this year, Bisnis Indonesia reported on Friday.

"The negotiations are still underway and we hope we could finalize the takeover plan in December, this year, "Bukit Asam's president Ismet Harmaini was quoted as saying.

Ismet, however, refused to unveil the name of the coal mining company that Bukit Asam wanted to acquire, but a source at Bukit Asam earlier said the firm was PT Multi Harapan Utama.

Ismet said that Bukit Asam had more than enough cash to finance the acquisition plan.

Ismet also explained that Bukit Asam had formally filed a proposal to build a steam power plant in Banjarsari in Lampung to state owned electricity company PLN. "The project will commence soon after PLN approves its proposal plan," he said.

Ismet said that a number of international banks from China, Germany and other European countries have expressed willingness to finance the 200 MW steam power plant.

Bukit Asam, which operates a giant coal mining area in Tanjung Enim, South Sumatera, reported a 15 percent increase in net profit in the third quarter of this year thanks to a surge in coal price.

The company's net profit was estimated to reach Rp 104.8 billion during the first semester of this year, a 30 percent increase compared to the same period of 2003. (*)